The paper-based process of international trade and trade finance, along with many other commercial transactions, is staff intensive, cumbersome, susceptible to fraud, and costly. Widespread efforts to convert paper documentation into digital form to address these issues have had to contend with both technological and legal barriers. In an effort that culminated last year, the Bankers Association for Finance and Trade (BAFT) saw an opportunity to significantly “leapfrog” forward the digitisation of trade finance with the emergence of blockchain/distributed ledger technology (“DLT”). Recognising that all trade transactions involve payment commitments, a BAFT Working Group produced standardized rules for the transformation of a payment commitment into a digital asset to be used in any trade finance solution sitting on any DLT platform. It published open-sourced business and technical standards for a Distributed Ledger Payment Commitment (“DLPC”), a simple legally binding, enforceable, interoperable, and negotiable financial instrument in digital form. These standards have been used in international trade transactions by Skuchain, a Silicon Valley fintech and, coincidentally, are mirrored in eNotes™ created by Swiss fintech, FQX AG, that are being used in trade finance and a myriad of capital markets transactions. Scott will highlight the main characteristics and benefits of the DLPC, and its potential for growing use as law reform globally is spurring digitalisation, and Sriram and Stephan will illustrate the practical uses of DLPC and eNotes™.
Wednesday, 26 October 2022
16:00 - 16:45 BST
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